1903-4.] THE PRINCIPLES OF INSURANCE. 77 
reasonable common sense by-laws as to building, and to provide plenty 
of water and efficient fire-extinguishing departments. They should indeed 
welcome suggestions made by responsible companies for the improvement 
of their fire prevention systems, but the companies may easily go too far, 
and sometimes do so when they dictate what must be done, under penalties. 
The proper way, it seems, is for the companies to measure risks as closely 
as they can, under the circumstances which exist, and to charge accordingly ; 
it is for the citizens to desire and adopt proper means of protection, when 
legitimate competition will regulate premiums.* 
Owing to frequent variations in mercantile and manufacturing hazards, 
fire insurances thereon are made from year to year. Upon dwellings and 
their contents three years is the customary, and, in Canada, the legal limit. 
The terms of fire insurance policies have become very liberal of late, e.g., 
losses by lightning are often covered, though no fire ensues, and as we 
may fairly say that an honest claim is sure of equitable settlement, free from 
technicalities, the relations between insurers and insured are, as they should 
be, very satisfactory. 
Marine insurance is of two principal kinds, on the hulls of vessels 
and on their cargoes and freights. It is here divided} into ocean and inland 
marine insurance, for there is a large and increasing number of vessels 
navigating our Great Lakes and connecting channels. The same difficulty 
in establishing an average which fire companies experience prevails in inland 
marine and all St. Lawrence business, for dangers depend largely on the 
weather, which differs every year, and a particularly violent storm, such as 
occasionally sweeps the lakes, river and Gulf, from the head of Lake Superior 
to and beyond the banks of Newfoundland, accompanied most of the way 
by snow or sleet, is sure to leave disaster in its track, notwithstanding the 
storm-warnings, which are very useful and very often disregarded. Hulls 
are usually insured for the season or the year, but at sea they are often 
covered for the voyage, which may last even longer. Cargo risks ‘“‘run off” 
much faster, resembling short term risks in fire business. Over-due ships 
become the subject of what looks like betting, and war-risks are beginning 
to be known again. The headquarters for marine insurance continues 
to be at Lloyd’s, which was at first a coffee-house where ship-owners and 
mariners used to meet. It is now not unlike the New York Stock Exchange 
in its general features. The first notice respecting Lloyd’s is dated 1688. 
In 1768 we hear of ‘‘ the amazing progress of illicit gaming at Lloyd’s 
* If any city or group of towns should feel itself oppressed, a temporary syndicate could be formed 
on the mutual principle, which would charge the same rates as the companies, but, after accomplishing 
its object, viz., the reduction of rates to a fair tariff, would wind up and, after paying liberally for the 
use of capital, divide the surplus among the insured. Such a syndicate working without canvassers 
or other agency expenses, would have better and more immediate results than any kind of municipal 
insurance. 
+ At the harbour of Montreal. 
